Licensed But Don't Have Time For the Business of Real Estate? Refer! Refer! Refer!
A non productive agent can generate a nice income stream by simply being affiliated with a company and refer their sphere of influence to an active and routinely productive agent with the same company.
There are so many licensed real estate agents in the business that simply aren't able to sustain their real estate practice. But for the purpose of this post, it doesn't really matter why (as you'll see), but some of the reasons may be that:
- Some have other jobs that require 40 hours a week of their time
- Others don't have the money that it takes to invest in the growth of their business
- While still some simply are not cut out for this business
- Unable to implement systems to generate leads and develop a business model
- Many lack motivation, assertiveness
- Perhaps some can't meet the demands that are associated with being a committed real estate professional
- What about others who may be introverts but just haven't learned how that can be an advantage for them
Despite the reasons why, these agents just love the idea of being a part of the real estate industry allowing them to be in business for themselves and support the lifestyle of themselves and their families.
Whoever said you had to sell real estate to profit from sales transactions. Why not become a referral agent. I don't just mean refer business to agents who live in another state where someone you know may be moving to. Nor do I mean simply refer an agent to a family member in another region of the country.
We know that you'd like to make the full 70, 80, 90 percent commission but if you are not closing any sales then 70, 80 or 90 percent of nothing is still one big ZERO. On the other hand, for example, if the average sales price in your market is $250,000 and you get at 30%* referral fee from the selling agent, you could probably live quite comfortable just on the referral income alone generated by a top producer.
* Keep in mind that as a referral agent your net will be based on your written agreement with the broker/agent. Terms and percentages may vary. The amount you net will depend on the percentage agreed upon and whether your referral fee is based on gross or net sales amount.
When you consider the amount of time and effort you put into referring a buyer or seller to another agent, it could literally be a gravy train. Part of being successful at ANYTHING is being able to recognize opportunity.
Bham WiiRE Realty is always interested in recruiting referral agents. Interested? Contact me.